Tesla Inc (TSLA) stock looks set to move higher, backed by a bullish MACD and a breakout above the moving averages.
Shares of Palo Alto, California-based Tesla Inc (NASDAQ:TSLA) have enjoyed a stellar run so far in 2017, gaining by over 30% Year To Date (YTD). Close to 11% of those gains have come over the last one month, and a little over 9% have in fact come in just the last 5 days. Going by some popular technical indicators like the Relative Strength Index (RSI) and the Bollinger Bands, TSLA stock looks overbought. With the RSI well above 70, and the stock price touching the upper Bollinger Band, traders won't be wrong if they believe that Tesla stock has entered overbought territory.
That said, if you look at some of the near-term trends involving the moving averages and the MACD (Moving Average Convergence Divergence), TSLA shares look set to move higher. For a short while, Tesla's 20 day Simple Moving Average (SMA) had fallen below the 50 day SMA. However, it is now poised to make a bullish crossover. Further, Tesla's stock price has risen above its 20 day and 50 day SMA's on reasonably strong volumes, which suggests that the trend could persist. What's more, Tesla's MACD also shows a clear bullish trend.
Last but not the least, there's bound to be some excitement around Tesla in the coming week, given the expectation that we may hear more about its rumored Model Y. Here's what ArsTechnica, the source of this news, had to say:
We asked Musk (via Twitter direct message) whether there was any truth to recent rumors of the fourth model. The reply? An enigmatic "Next week."
Facebook stock (FB) has entered overbought territory.
Based on the two popular technical indicators we discussed above, shares of Menlo Park, California-based Facebook Inc (NASDAQ:FB) look overbought at the moment and could be due for a near-term correction. Like Tesla, FB stock has also had a good run in the YTD, rising by close to 24%. The long-term outlook for FB stock remains strong, armed with solid growth drivers like Instagram, and emerging markets like Virtual Reality. However, in the near term, FB stock seems to have entered overbought territory. For starters, a look at the RSI shows how FB stock has crossed the threshold of 70. As a secondary confirmation, even the Bollinger Bands indicate an overbought condition, with the stock touching the upper band. Further, there aren't any clear signals from other indicators like the MACD. For now, FB shares may be headed for a near-term correction, and investors who are in for the long haul could use this opportunity to buy the stock.
Apple Inc (AAPL) Stock Enters Overbought Conditions, Moving Higher On Declining Volumes.
Again, much like Facebook and Tesla, shares of Cupertino, California-based Apple Inc (NASDAQ:AAPL) have also enjoyed a good run YTD. Having gained by over 24% so far in 2017, Apple is now closing in on the $150 mark. However, AAPL stock has entered into the overbought territory and could be on the verge of a near-term correction. Based on the RSI, which has crossed the 70 threshold, as well as the Bollinger Bands, with Apple's stock price touching the upper band. While the MACD looks set for a bullish crossover, the most recent upticks have come on the back of declining volumes, which indicate that the ongoing trend may not sustain. Much like in the case of FB stock, AAPL is also one of our top stock picks from the technology sector, which have beaten the NASDAQ by over 134%. And we think Apple stock is a great long-term investment option.
If you're looking for trading ideas today, you could consider the ones we've listed down in this post. However, If you're looking for solid stocks from the auto sector, check out our top auto picks, which have beaten the S&P 500 by over 170%. If you liked this post, do share it using the social media icons below. And oh! almost forgot, you might also be interested in our weekly technical stock picks. Do let us know what you think.